Asian Markets Mixed Amid Trade Talks and Earnings Reports

Asian stock markets experienced a mixed performance on Monday, following a week of gains in U.S. markets. U.S. futures and oil prices saw increases in anticipation of trade discussions between U.S. and Chinese officials in Stockholm.

European futures also rose after the European Union reached an agreement with the Trump administration regarding tariffs. This agreement, reached after a meeting between President Donald Trump and European Commission chief Ursula von der Leyen, averted potentially higher import duties that could have negatively impacted global economies.

Specific market movements included a 1% decrease in Tokyo's Nikkei 225 index, reaching 41,056.81, due to uncertainties surrounding the trade truce between Japan and the U.S. Hong Kong's Hang Seng index saw a 0.4% increase, closing at 25,490.45, while the Shanghai Composite index experienced a 0.2% decline, reaching 3,587.25. Taiwan's Taiex rose by 0.3%.

In other Asian markets, South Korea’s Kospi remained relatively unchanged at 3,195.49, and Australia’s S&P/ASX 200 rose by 0.3% to 8,688.40. India’s Sensex saw a slight decrease of 0.1%. Markets in Thailand were closed for a holiday.

On Friday, the S&P 500 reached a new all-time high for the fifth time in a week, increasing by 0.4% to 6,388.64. The Dow Jones Industrial Average climbed 0.5% to 44,901.92, and the Nasdaq composite added 0.2%, closing at a record high of 21,108.32.

Individual company performances included a significant jump of 11.3% for Deckers, the company behind Ugg boots and Hoka shoes, due to stronger-than-expected profits and revenue. Conversely, Intel experienced an 8.5% decline after reporting a loss for the latest quarter.

The overall market sentiment is influenced by the expectation of trade deals that could lower proposed tariffs, along with the potential impact of these tariffs on the economy and inflation. The Federal Reserve's upcoming meeting on interest rates is also a key factor, with expectations leaning towards a wait-and-see approach before resuming interest rate cuts.

In early Monday trading, U.S. benchmark crude oil and Brent crude both saw increases. The dollar rose against the Japanese yen, while the euro slightly decreased against the dollar.